ZIMALLOYS DEAL 'HANGS IN THE BALANCE': Page 7 $20 News Worth Knowing Ex-Tongaat boss hits back: Page 7 December 12-18 2019 ESTABLISHED 1969 @ FingazLive www.fingaz.co.zw Facebook: The Financial Gazette ZSE Report The All Share Index gained 0,3 per- Zim bleeds cent on Wednesday to close at 232 points. Mash picked up 20 percent to end at $0,10, while FML traded 12,5 percent higher at $0,27. Econet gained 1,6 percent to close at $1,48. The Industrial Index was up by 0,3 percent to close at 772,3 points, while the Top 10 Index gained 0,3 percent to end at 207,1 points. The Minings Index was flat at 328,5 points. formal jobs Currencies (Bloomberg) % change USD:ZAR 14,7555 0,24 ◀ EUR:USD 1,1091 0,01 ◀ ◀ GBP:USD 1,3180 0,18 USD: JPY 108,7200 0,02 ◀ Stock Markets ◀ ZSE (All Share) 232 0,30 ZSE (Minings) 328,5 0 11 793.00 0,69 JSE ◀ as local rot ◀ FTSE 100 7 220.52 0.09 ◀ Dow 27 883,96 0,01 Commodities ◀ Gold 1 468,24 0.28 ◀ Platinum 930,58 0,94 Brent Oil 64,10 0,37 ◀ Grains (Grain SA) gets worse ◀ White Maize ZAR 2 116,17 0.4 ◀ Soya ZAR 4 900,79 1,5 Nelson Gahadza Israel Murefu, the Employers Confederation ◀ Business Writer of Zimbabwe president, said the ongoing job Wheat ZAR 2 907,19 1.6 losses were attributable to a number of factors IMBABWE’S deepening economic crisis that hindered capacity utilisation in organisa- Two percent tax is forcing many of the companies that are tions. Zstill in business to scale down their oper- “The major ones are power, fuel, water and to stay — Ncube ations and to lay off staff, with the jobs carnage foreign currency shortages, as well as, in some FINANCE minister Mthuli Ncube expected to escalate next year. cases, the lack of access to adequate capitalisa- says the two percent tax introduced by This comes as virtually all of the country’s tion or credit,” he said. government last year is here to stay. key economic indicators are pointing to a tough- Crucially, Murefu said, there were policies This comes as business had called er 2020 for business than this year — as inflation that had been put in place by authorities “which for the removal of the controversial keeps soaring and the local currency weakens, stifle business performance, especially the enact- tax, which is largely blamed for in- amid severe shortages of power, fuel and foreign ment of unilateral statutory instruments which creasing production costs and fuelling currency. choke rather than promote business”. inflation. “There is no demand for labour from busi- He said Zimbabwe’s total formal working However, Ncube told Parliament ness. There are two issues currently resulting in population, inclusive of civil servants, was cur- yesterday that money collected from job losses, which are that business has lost vol- rently estimated at a mere 700 000 to 900 000 Jackie Mpondo-Hendricks, the current and first black female pres- the Intermediated Money Transfer umes — at least 42 percent on average. people. ident of the Johannesburg Chamber of Commerce and Industry, Tax was being used for several gov- “In addition, it is currently not possible for “This is because many companies have closed says the 129-year-old organisation, which last week signed an MoU ernment projects. business to increase salaries ... but retrench in shop and a lot of people have lost formal jobs. with the Zimbabwe National Chamber of Commerce, is looking to “A lot of projects have benefited order to preserve businesses,” Memory Nguwi, a “As a percentage of the population that has strengthen the contribution that South African businesses can make from the two percent tax, these include human capital expert with Industrial Psychology capacity to work, this number is very small, at towards the revitalisation of the Zimbabwean economy. projects under Cyclone Idai, some Consultants (IPC), said. around 10 percent, if not less. To Page 2 Picture by Freedom Mashava roads, health sector and education,” he said. Page 2 | December 12-18 2019 The Financial Gazette National News Zim bleeds formal jobs as local rot gets worse From P1 “And the current measures, especially as es- poused through the 2020 Budget and the Tran- sitional Stabilisation Programme, do not appear to be adequate to stop the job losses,” Murefu added. “Government needs to do more if the current carnage with respect to jobs is to be arrested or stopped,” he told The Financial Gazette further. On his part, Zimbabwe Congress of Trade Unions secretary-general, Japhet Moyo, said the massive job losses were an outcome of the country’s seemingly unending economic crisis. “The job losses have been underpinned by Godfrey Kanyenze Japhet Moyo Israel Murefu the economic decline that has also been high- lighted by a debilitating liquidity crunch, low “The energy crisis has also crippled pro- lenges also go to politics. Political parties tual — one of the few local business successes industrial capacity utilisation of less than 30 duction capacities, rendering some employees should find each other for the good of the econ- — recently embarked on a voluntary retrench- percent and prolonged power cuts of up to 18 worthless, and resulting in companies reducing omy,” Kanyenze added. ment exercise. hours a day. their workforce. According to ZIBAWU, banks alone laid off “The economic challenges facing our coun- “At least 300 financial services sector staff “The country’s economy is still too volatile at least 2 000 workers in the five years to 2017. try and the business have not relented, given the were laid off between August and October of to support job creation. Analysts also say more job losses will com- high inflation rate and the need to control total this year alone, as companies intensified staff "We are in a hyperinflation environment and plicate an already bad situation in the coun- operating costs. rationalisation programmes,” he said, adding demand is on the weak side, which has impact- try, where at least 75 percent of the country’s “It is important for the business to reduce that this had been happening across all the sec- ed the viability of companies,” Kanyenze said. working population ekes a difficult living in the costs,” Jonas Mushosho, the financial services tors of the economy. “The only thing that can address the carnage tough informal sector, according to research by group’s respected chief executive, said. Godfrey Kanyenze, a director at the Labour is dialogue through the Tripartite Negotiating IPC. “In April 2019 management rolled out a vol- and Economic Development Research Institute Forum. Government also needs to deal with the Some of the hardest hit sectors of the econ- untary retrenchment scheme as a way of man- of Zimbabwe, also said companies had been accounting issue, in particular the currency. omy jobs-wise have been the clothing industry aging costs in response to the deteriorating eco- dealt a huge blow by the economic crisis, partic- “It is the reason why the economy is self — which employed more than 35 000 workers nomic environment. ularly the ongoing foreign currency challenges. re-dollarising, resulting in reduced production in the mid-1990s, but now employs less than “However, the response to this vol- “The wave of job losses has been largely a by businesses as US dollar funding becomes 8 000. untary retrenchment exercise was result of the macro-economic volatility which difficult. In the meantime, and highlighting the tough below expectations,” he said. has forced companies to reduce labour. “While there is no easy solution, the chal- operating environment in the country, Old Mu- [email protected] New twist to Shanfari, army battle USINESSMAN Thamer Al Shanfari has erties" are rundown, and in a state of neglect. petitioned seasoned lawyer Jonathan Without clearly stating the army’s interest BSamukange and the deeds registrar to re- and beef with the Oasis Energy Group founder, cuse himself from representing the military, and though, Muchinguri-Kashiri and her defence al- explain how the latter would have secured title lies maintain that the troubled businessman had of his Glen Lorne properties without his consent. no claim to the “immovable properties as he This comes as new information suggests Diet- was a fugitive from justice, and a foreigner who rich Herzog — a German national whose alleged could abscond if he loses the current cases”. kidnapping forms the centrepiece of a strategic “The immovable property in dispute does offensive against the banished tycoon — has re- not belong to him, it is a property owned by the portedly renounced the ‘hostage’ story and the Defence ministry through its commercial vehicle latter had been a victim of sour Congolese deals. which was created for the purpose among other “We are taking further instructions of us filing things to acquire this property,” she said. an answering affidavit… However, the course Sadly, Al Shanfari’s papers have not made it that this case will take depends on your attitude clear what the (potential) source and nature of to key objections that the applicant… has raised dispute was between him, and his erstwhile busi- regarding your involvement in this case,” Al ness partners. Shanfari’s lawyers said in a November 27 letter And it is also the cast — of direct, and indi- to Samukange, adding the opposition emanated Jonathan Samukange Oppah Muchingwuri-Kashiri rect — role players as well as names associated from the fact that the prominent attorney had with this saga, which make it a curious and pe- previously represented the Omani businessman also barred from representing parties, including (Oryx) founder's assets not only comes as there culiar matter.